The Hindu Business Line : Huge scope for predictive analytics: Karnik

PREDICTIVE analytics, which connects data to effective action by drawing reliable conclusions about current conditions and future events, provides an exciting opportunity for Indian software companies, according to Mr Kiran Karnik, President, Nasscom(National Association of Software and Service Companies).

A number of global banks and large financial service firms have huge data banks and would like to use it to understand customer demands, and roll out new customised products. . Software companies can move up from doing just data to predictive analytics , Mr Karnik said at Connect 2005 here on Friday, organised by the CII and the Tamil Nadu Government.

For predictive analytics, companies should have people with high-end skills in mathematics, econometric, demography and domain knowledge. Predictive analytics, which is beyond knowledge process outsourcing, is a combination of intellectual property and providing services that can be outsourced, he said. "Give a thrust to predictive analytics," he said.

According to Mr Karnik, there is a huge opportunity for Indian software firms in the BFSI (banking, financial services and insurance) sector, which contributes nearly a third of the country's software exports. However, India was just scratching the surface, he said. The global market for financial services for IT this year is expected to be $240 billion. . In the last few years, investment in IT by banks has been very slow, but it is set to take off in a big way. "Innovate and provide services in greater value to customers," he said.

Chennai as hub: Chennai, which is perceived to have a reputation in producing people with good mathematic skills, can be the hub for BFSI offerings and also for predictive analytics, according to Mr Karnik.The city should benchmark itself against Shanghai, China, and not Mumbai or NCR (National Capital Region), he said.

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